NV man accused of selling stolen US military ammo

June 10, 2011 - 4:14 PM

RENO, Nev. (AP) — A former defense contractor employee has been indicted on charges that he conspired with others to steal U.S. military ammunition in Iraq and then sold it back to Iraqis and U.S. forces.

Chad Eric O'Kelley was released on his own recognizance after being arrested at his Carson City home and making an initial appearance Thursday. He faces federal charges of conspiracy to defraud the U.S. government and money laundering.

The indictment alleges O'Kelley was a manager in Baghdad with Minden-based defense contractor Security Operations Consulting in 2007 when he conspired with others to sell the ammo and send cash to the U.S. via Federal Express or couriers.

The 40-year-old man was ordered to appear in federal court in Texas, where he used to live in El Paso.